A sharper-than-expected slowdown in China due to financial sector vulnerabilities coupled with the failure of Abenomics to sustainably turnaround Japan’s economy are two main risks to Asia’s economic outlook, the International Monetary Fund (IMF) said.
Nevertheless, the IMF expects growth in Asia to remain steady at 5.4 percent this year, up from an earlier 5.3 percent forecast, before improving slightly to 5.5 percent next year. Last year, the region grew 5.2 percent.
Asia also faces risks originating from outside the region it warned, noting a sudden or sharper-than-anticipated tightening of global financial conditions remains a threat.
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